CASE STUDY:

Atlantic Bridge

Panama

Value: $200 Million

Services: Construction & Engineering

PROBLEM

Delta was engaged by the Panama Canal Authority to evaluate a $300 million claim from the EPC Contractor for the construction of a bridge over the Panama Canal. The project consisted of a cable stayed bridge with two towers and 4 piers, an east approach viaduct with 19 piers and a West Approach Viaduct with 16 piers. The total project value was $400 million. The original contract duration was 3.5 years. The project incurred over 3 years of delay. The authority granted time extensions totaling about one year. The contractor submitted a delay claim for an additional 2 years.

SOLUTION

The EPC Contractor submitted a delay claim based on the As-Planned vs. As-Built Windows method (MIP 3.2 by AACE International taxonomy). Delta analyzed the delay analyses and prepared a thorough rebuttal based on the contemporaneous project schedules, contract, contract modifications and project record. Delta also performed an independent delay analysis to determine the source, magnitude, cause and responsibility for the critical path delays, as well as a cost and damages analysis. Delta used the Contemporaneous Period Analysis (MIP 3.4 by AACE International taxonomy). Delta’s analysis included validation of the baseline schedule and updates. Delta addressed the claimed damages to include direct cost claims, delay and disruption damages, thickening of staff, added risk and loss of productivity.

OUTCOME

The dispute was heard by an ICC Arbitration Tribunal. Delta submitted its findings to the tribunal via detailed expert and rebuttal reports. At the hearing, Delta provided expert testimony on delay, loss of productivity, risk, and damages.